[Congressional Record Volume 147, Number 35 (Thursday, March 15, 2001)]
[Extensions of Remarks]
[Pages E367-E368]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 REINTRODUCTION OF THE BROKEN PROMISES RETIREE HEALTH COVERAGE ACT OF 
                                  2001

                                 ______
                                 

                         HON. GERALD D. KLECZKA

                              of wisconsin

                    in the house of representatives

                        Thursday, March 15, 2001

  Mr. KLECZKA. Mr. Speaker, I am reintroducing legislation today, 
entitled the Broken

[[Page E368]]

Promises Retiree Health Coverage Act, which would assist our nation's 
retirees who face the unexpected loss of health care benefits promised 
by a former employer.
  Thousands of hard-working retirees have been forced to cope with 
sudden cancellations and reductions of their health coverage over the 
past several years. In my hometown of Milwaukee, 750 retirees were left 
high and dry when the Pabst Brewing Company shut down its operations 
and cancelled retiree health coverage in 1996. Although they went to 
court and finally won a nominal prescription drug benefit, the loss of 
promised health coverage was a serious blow to their financial 
security. This treatment is not what retirees should get in exchange 
for many years of loyal service to their employer.
  More recent events in Milwaukee underscore the pressing need for this 
legislation. Earlier this month, a bankruptcy court judge's decision 
left an additional 490 Milwaukee-area retirees plus their spouses and 
dependents of bankrupt Outboard Marine Corporation without any 
employer-promised health insurance.
  Unfortunately, reports indicate that this problem will only get 
worse. Last year, the number of large firms with 500 or more employees 
offering health coverage for pre-Medicare-eligible retirees fell from 
35 percent to 31 percent. This alarming statistic proves that coverage 
loss is not an isolated incident, but part of a disturbing national 
trend. As I reintroduce this measure in the 107th Congress, I renew my 
commitment to providing meaningful support to the retired workers and 
their families across the nation who have or will experience the 
tremendous loss of retiree health coverage.
  My legislation would establish a safety-net for retirees. First, the 
bill would require employers to give at least six months notice to 
retirees about their impending loss of health coverage so retirees may 
be more prepared to handle the coverage loss, and if possible, seek 
other insurance options. To ensure the cancellations or reductions are 
lawful, the U.S. Department of Labor must certify that any changes to 
retiree health benefits meet the requirements of the collective 
bargaining agreement. Second, the bill ensures that health care options 
remain for those retirees over 55 by allowing retirees to either buy 
into the Medicare program or buy into their former employer's current 
health coverage plan until they turn 65 and become eligible for 
Medicare. Lastly, the bill would allow retirees, who did not sign up 
for Medicare or Medigap when they turned 65 years old, to apply for the 
programs without late-enrollment penalties.
  Mr. Speaker, this legislation is critical to the retirement security 
of all American workers. I urge my colleagues to show their support for 
retired workers and their families by cosponsoring this bill.

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